A company sells goods with a warranty for the cost of repairs required in the first 1 month after purchase. Past experience suggests:

i) 85% of the goods sold will have no defects

ii) 8% will have minor defects

iii)7% will have major defects

If minor defects were detected in all products sold, the cost of repairs will be OMR 66,000; if major defects were detected in all products sold, the cost would be OMR 272,000.

What amount of provision should be made?

a) OMR 24,320

b) OMR 50,700

c) OMR 26,380

d) None of them